Heloc

[csmith5659]

Hi -

First time and as others say, so glad to have found this info. Have found a lawyer and am filling out paperwork. Not 100% sure we will pass means test but keeping fingers crossed. Two questions:

We don't have a mortgage on our primary residence, but we do have a maxed out HELOC for about 50% of the value. It has come due and because of terrible business losses (reason for BK) we can't pay it off and certainly won't be able to qualify for renewal. Our lawyer suggested we try to get them to amortize it with set payments. They won't respond to us and just keep sending bills for the full amount. Is there some pending legislation that makes them not want to chance the terms? Is a HELOC considered a mortgage? Honestly the talk about stripping liens etc is confusing.

Any help will be appreciated.

[StartingOver08]

HELOC = Home Equity Line of Credit. Yes it is a mortgage because it is a lien against the house.

If the HELOC is 50% of your home's value - you would not be able to stip the lien because the lien has to be wholy unsecured.

However, you might qualify for the Making Home Affordable plan. Take a look at this link:

http://makinghomeaffordable.gov/

[MichiganMan]

They want the house.

My best guess, they want the house. They are looking at a 50% profit if they get the house. That is why they are ignoring you.

Of course I am not them, so the truth will come out as you go along. I would bet they will file for a removal of the temporary stay so they can start forclosure. It is a lien on the house.

[spidge]

Hopefully you can file ch 7 and not have payments of any kind. I bet there are lenders out there that would give you a new fixed loan with 50% equity. You may not get a great rate but many allow for streamlined refi's at low or no cost later when your credit improves.